Following are highlights of recently published papers:

Ahmed Abbasi, Joe and Jane Giovanini Professor of IT, Analytics, and Operations
David Dobolyi, Assistant Research Professor of IT, Analytics, and Operations
"The Phishing Funnel Model: A Design Artifact to Predict User Susceptibility to Phishing Websites" (Information Systems Research)
Phishing is a security risk that affects both individuals and organizations alike. To better protect against it, we (along with our co-authors) developed a model that is better able to predict user susceptibility to phishing in real-time by evaluating the entire phishing process holistically.

John R. Busenbark, Assistant Professor of Management & Organization
"Corporate-level influences on internal capital allocation: The role of financial analyst performance projections" (Strategic Management Journal)
Research on internal capital allocation — the practice by which corporate managers of multidivisional firms distribute financial resources to the business units — offers perplexingly mixed insight as to whether managers benefit from helping financially stimulate underperforming divisions or rewarding the top performing segments. In our research, we theorize and find that firms performing well below or above expectations are incentivized to engage in the former, whereas firms performing consistent with expectations allocate capital consistent with the latter.

Zhi Da, Howard J. and Geraldine F. Korth Professor of Finance
"Extrapolative Beliefs in the Cross-section: What Can We Learn from the Crowds?" (Journal of Financial Economics)
Using novel data from a crowdsourcing platform for ranking stocks, we investigate how investors form expectations about stock returns. We find that investors extrapolate from stocks’ recent past returns, with more weight on more recent returns, especially when recent returns are negative, salient, or from a dispersed cross-section.

Dean Shepherd, Ray and Milann Siegfried Professor of Entrepreneurship“Grounding Business Models: Cognition, Boundary Objects, and Business-model Change” (The Academy of Management Review)
This study builds on grounded-cognition theories and the notion of boundary objects to offer a grounded-cognition framework of business-model change. By developing this framework, we advance understanding of the micro-foundations of strategy; offer a new pathway by which stakeholders inform value creation and value capture; and explain nuances in the relationship between boundary objects, business-model coherence and the decision to change a business model, and illustrate how the mechanisms that help create a viable new business model can also help overcome an actor’s psychological obstruction to making a pivot.

Joonhyuk Yang, Assistant Professor of Marketing
"High-energy Ad Content: A Large-scale Investigation of TV Commercials" (Journal of Marketing Research)
A trend reported by both academics and practitioners is that advertising on TV has become increasingly energetic. Using a data set of over 27,000 TV commercials delivered to U.S. homes during the period between 2015 and 2018, this study investigates the association between the energy level in ad content and consumers’ tendency of ad-tuning. The authors find that more energetic commercials are likely to be tuned in more or avoided less by viewers, while the association varies across product categories and program genres. The main implication of this study is that advertisers should pay attention to components of ad content other than loudness, which has been regulated by law.

Congratulations, Ahmed, David, John, Zhi, Dean and Joonhyuk on your publication success.

In Notre Dame,

Martijn

I would like to share with you an update on a major revision to our undergraduate program (i.e., our Bachelor in Business Administration — BBA — degree).

This past fall, working closely with department chairs and Associate Dean for Undergraduate Studies Jim Leady, we revised the Business Core curriculum to significantly reduce requirements and increase flexibility in our students’ plans of study. The new curriculum meets our ultimate objective to expand students’ academic opportunities and improve their journey here at Notre Dame.

The Business Core includes the business courses that all BBA degree students must take regardless of their major. The key change (pending any minor amendments that may be added via College Council votes) is that the new Business Core will reduce the number of required courses from 18 (49.5 credit hours) to about 10 courses (26.5 credit-hours) plus nine credit hours of “broadening” business electives.

Importantly, all undergraduate students will still experience a foundational course from each business discipline. The reduced number of core courses primarily involves the upper-level courses currently required; these in part will be replaced by the new nine credit hours of broadening business electives that students will take in multiple departments outside of their own major’s department.

The new Business Core provides students with greater choice in their individual curricula, enabling them to better design a curriculum suited to their particular academic interests and career aspirations. It will give students more opportunities to specialize in a secondary discipline, both in other colleges and within business, while maintaining the overall balance between liberal arts and business coursework. The reduced requirements and enhanced flexibility also will enable further course innovation in the future, allowing for our faculty to offer new courses aligned with their academic and social interests.

This change to the Business Core is the first step in our broader curriculum revision. After a rigorous, constructive and open debate, the College Council approved the revised Business Core outlined above by a 2:1 margin on December 3, with the expectation that the Council would consider various amendments over the coming weeks and months. The College Council subsequently considered several amendments when it met again on December 17 (none of which had a majority vote in favor of adding to the core) and will consider more amendments at its next meeting scheduled on February 17. I expect that meeting will conclude the first step of the revision process.

The next step is already occurring in our five academic departments. Each department is considering the impact of the reduced Business Core coursework on the requirements for its major. Some departments will adjust requirements if a course that was eliminated from the Core is critical for the major. The potential revisions to each of the majors will be completed this spring, allowing the new Business Core and major requirements to apply to the new First Year business students starting in Fall 2022 (i.e., the Class of 2026). None of the changes will apply to any of the students currently enrolled in our undergraduate program.

The third step is the curriculum innovation enabled by the substantially reduced Business Core requirements and the increased flexibility for our undergraduates. We envision the development of minors in each department that are open to all business majors, including cross-disciplinary minors with courses across multiple departments as well as cross-college minors.

In addition to the new minors, our hope is that BBA students may be able to double-major within business for the first time in the College’s history while maintaining the overall balance of a liberal arts education. We also hope to work toward offering a cornerstone interdisciplinary course with experiential learning for undergraduates similar to the Meyer Business on the Frontlines Program for MBA students.

As with any change, I realize that there will be significant disruption as the College transitions to the new curriculum. This transition may be particularly disruptive to faculty who have been teaching courses that will no longer be required in the new Business Core. I commit to fully supporting affected faculty transitioning to new teaching opportunities over the next several years as they retool to teach other courses.

I would like to thank everyone who has contributed to the new curriculum design process and look forward to the future innovation in our undergraduate program.

In Notre Dame,

Martijn

Congratulations to the following faculty members on their recently published research:

Huaizhi Chen
Assistant Professor of Finance
“Don't Take Their Word for It: The Misclassification of Bond Mutual Funds” (The Journal of Finance) 
We show a significant gap between how bond fund managers classify their credit risks and their actual credit risks. This phenomenon results in the pervasive misclassification of bond mutual funds."

John Donovan
Assistant Professor of Accountancy
“Measuring Credit Risk Using Qualitative Disclosure” (Review of Accounting Studies)
We use machine learning to create a measure of credit risk using information disclosed in conference calls. In out-of-sample tests, we find that our measure improves the ability to predict bankruptcies, interest spreads, and credit rating downgrades.

Rob Easley
John W. Berry Sr. Department Chair and Professor of IT, Analytics, and Operations
“Data-Driven Sports Ticket Pricing for Multiple Sales Channels with Heterogeneous Customers” (Manufacturing & Service Operations Management)
In this project, we develop a framework that estimates the demand of season tickets and single-game tickets and optimizes prices by taking into account the multiple sales channels which run sequentially and aim to target different customer groups.

Xinxue (Shawn) Qu
Assistant Professor of IT, Analytics, and Operations
"Predicting Upgrade Timing for Successive Product Generations: An Exponential-Decay Proportional Hazard Model" (Production and Operations Management)
The presence of successive product generations renders traditional diffusion models unsuitable for characterizing consumers’ upgrade decisions. This research proposes a parsimonious and interpretable model to predict consumers’ time to product upgrade based on their previous adoption and usage experience.

Adam Wowak
Associate Professor of Management & Organization
“Corporate Directors as Heterogeneous Network Pipes: How Director Political Ideology Affects the Interorganizational Diffusion of Governance Practices” (Strategic Management Journal)
This study shows that the political ideologies of interlocking directors (i.e., directors who simultaneously serve on multiple boards) influence their relative propensities to act as conduits in the spread of governance practices from firm to firm.

Thank you to Huaizhi, John, Rob, Shawn and Adam for your contributions.

In Notre Dame,

Martijn